Jamsostek tightens investment policy

JAKARTA (JP): PT Jamsostek, a state-owned company that runs a social security program for workers, has tightened its investment policy to prevent future losses and to improve its image.

Jamsostek president Ackmal Husin said on Monday that, learning from widespread criticism and instances of bad investment, the company would no longer arbitrarily inject its participatory capital into other companies.

The company would instead form a team to deal with investment, he said. "Before making any decisions, the team will consult the government, namely the minister of finance, so that all decisions are accountable," he said here yesterday.

He said the company suffered a loss of Rp 2.3 billion when it bought convertible bonds worth Rp 4 billion published by PT Tetronix in 1992.

PT Jamsostek suffered losses when the electronics factory that produced Grundig TV sets and radios caught fire in 1995.

Ackmal said the company was also facing difficulties regaining its money from the purchase of commercial papers worth Rp 36 billion from (PT) Bank Pacific which was liquidated by the government last November.

"We will ask the Attorney General's Office's help to handle the case," he said, adding that of the Rp 36 billion, the bank had returned Rp 14 billion to PT Jamsostek in the form of a 187- hectare plot in Jonggol, Bogor, West Java.

He said the bank had to return the rest of Rp 22 billion since the money came from workers and employers participating in the program.

Ackmal denied speculation he has been held as a suspect in the land deal between PT Jamsostek and Bank Pacific, saying that his company would sue Ponco Sutowo, the bank's owner, over the troubled commercial papers.

Jamsostek's investments have reached Rp 6.7 trillion. This has been invested in participatory stakes in listed companies, bank deposits and commercial papers in state and private banks and the central bank.

Ackmal also urged the government to continue enforcing the law on social security programs, despite the plan to privatize the program.

"The government should be consistent in enforcing the law to give insurance protection for workers until a new law is made," he said.

He said that a majority of workers and companies had yet to participate in the compulsory social security program.

According to data from the company, of the country's 60 million workers, only 14 million participated in the insurance program.

The law stipulates companies employing 10 workers or more, or paying Rp 1 million per month in wages, are obliged to participate in the program. (rms)